Go to the courthouse for
meeting with court trustee. (Probably only once. Much can be
done by mail or online.)

File motions to eliminate liens (learn more law, and more
forms).

Attend mandatory pre-discharge Credit Education session.

Receive court Discharge Order that officially wipes
out your debts.

Get on with your life.

To file for bankruptcy, first you need to learn enough to
know where to start.

This site helps you do that. It will
give you an overview of the bankruptcy process and connect you with
a wide variety of resources (information, products, services,
and lawyers) that can help you through the bankruptcy maze.

This site is free. Unlike other bankruptcy sites, you don't need to
register or provide any identifying information to use the means
test calculator. If you want to contact an advertiser, that's up to you, but this website isn't after your name or email address.

Do you need to file for bankruptcy?

You may not need to file for bankruptcy.

Chapter 7 bankruptcy is the neutron bomb of debt management and asset protection.
A Chapter 7 is quick (a few months), and quite complete when it comes to wiping out unsecured debt like credit card and medical debts. You may want to save it for when you really need it--you can use Chapter 7 bankruptcy
only
once every seven years.

On the other hand, your particular combination of debt, income, and
property may be a perfect fit for bankruptcy protection. The vast majority of people who end up filing for bankruptcy really
do need it.

A lot has been written lately about whether bankruptcy makes sense for people, in light of the economic downturn, including these articles:

Info is not advice

This site will point you to numerous books,articles and services that
can help you figure out whether it makes sense for you to file
for bankruptcy.

However, this website cannot answer whether you, specifically,
should or should not file for bankruptcy.

If you have questions about whether bankruptcy is right for you,
you may want to seek
credit counseling from a reputable agency or consult a lawyer. A free or low cost consultation with an experienced credit counsellor or attorney can help you identify the relevant factors of your specific financial situation that ultimately determine whether bankruptcy is an appropriate, financially prudent option at this point in your life.

The typical bankruptcy filer is a
person already in fragile economic circumstances, often with large
amounts of credit card debt, who then suddenly faces a spate of hard
luck (loss of job, injury, divorce, uninsured medical expenses), resulting
in mounting penalties and an unpayable amount of debt.

Bankruptcy
law is designed to help people just like this, who need assistance
in making a clean break -- a "fresh
start"
on life, rather than spend the rest of their lives being crushed by
the burden of unpayable debt.

Even if you're facing unpayable debt, you still may not need bankruptcy
to protect your assets. Under the
Exemption Laws of
New Jersey, you may already be "judgment-proof." If so, you need not fear credit card companies simply
because you owe them. Unsecured creditors (like credit card companies)
can't take your stuff if it's exempt. If there are harassing phone
calls, you can stop them with a simple phone call or letter. (However, interest and penalties on your debt will continue to accumulate and bankruptcy will put a stop to that.)

But exemption laws do not protect property from all types of debts
or all types of creditors. For example, exemption laws typically do
not protect you against collection of child support or tax debts. And
if you bought property and pledged it as collateral for the purchase-money
loan (for example, a car loan or mortgage), the lender can take the
property regardless of any exemption law.

Where to Find More Information

There's much more to be said about this topic than can
be said on a Web page. Any decision to file for bankruptcy versus other alternatives requires
a thorough, systematic review (by you or someone you hire) of your
income, debts, and property.

For
less than $30, you can purchase and/or download Nolo's book,
How to File for Chapter 7 Bankruptcy, which I wrote with attorney
Steve Elias and Robin Leonard. Chapter
1 will walk you through a self-analysis of your situation
and explain your options in plain English. The rest of the book offers
step-by-step discussions of exempt property, keeping your home, and
how to prepare and file your bankruptcy forms. The book includes line-by-line
instructions for the official bankruptcy forms, complete with filled-in
examples. Throughout the book, you are alerted to situations that
are particularly troublesome and should not be handled without
an attorney. (See Amazon.com reviews [here]
and press reviews [here].)

This website supplements the information
in the book by providing quick access to local (county-by-county)
information and services.

If you want legal advice and analysis of the details of your
specific situation, you can hire a New Jersey bankruptcy lawyer to advise
you. You'll find listings in the Lawyers section
of this site. These
listings are not endorsements. They are simply designed to help you
quickly connect with service providers in your area.

Whether
you decide to do it yourself or hire professional help,
this site will help you become a smarter, better-informed consumer
and help you steer clear of shoddy services.

What kind of bankruptcy do you qualify
for?

New Jersey Median
Income
If
your average monthly income for the past six months
is below the state median for your size household, you meet
the requirements of the "means test" (section 707(b)(2) of
the bankruptcy code) to qualify for Chapter
7 Bankruptcy.

Note. The means test is but one of several hoops you must
jump through. Even if your income is low, a judge can prevent
you from filing Chapter 7 if it appears that you have enough
income to repay a substantial portion of your debts in a 3-year
Chapter 13 plan.

There are two main types of bankruptcies for consumers:

Chapter
7 allows you to eliminate most unsecured debts in a matter
of months in return for giving up all "non-exempt" property --
if you have any.

Most people who file for Chapter 7, have no available non-exempt property or equity. Whatever they still own by the time they file is either protected
by exemption
laws, or pledged to a secured creditor as collateral for a debt, and therefore not available to pay off unsecured creditors.

These are known as "no asset" bankruptcies, and most Chapter 7s are of this type.

Chapter 13 takes 3 to 5 years. Instead of
giving up property, you repay a portion of your debts
and live within a strict budget that is monitored closely by the
bankruptcy court trustee. If you can't make the required
monthly payments, your Chapter 13 bankruptcy fails
and your debts will remain (unless you convert to a Chapter 7
bankruptcy).

Chapter 13 is commonly used by people who are behind on secured debt payments (e.g., mortgages) and want to propose a Chapter 13 plan to catch up on these payments over time.

Under the new bankruptcy law, which took effect in October 2005,
a mathematical formula called the "means test" establishes
an initial determination of the kind of bankruptcy you qualify
for: Chapter 7, Chapter 13, or either. This formula takes into
account:

your monthly income

the amount and kind of your debts, and

other aspects of your financial
situation.

If your annual income is less than the New Jersey median income
for your household size, then you
can file for Chapter 7 or Chapter 13, (assuming you meet other
qualifications). If your income is higher than the state median, you
must first complete a long list of expense deductions to estimate what
your 'disposable income' will be over the next five years. The result
of this calculation determines whether you can file for Chapter 7,
or are left with Chapter 13 as your only option.

Although this form is rather long and complicated, the free,
online Bankruptcy Means Test Calculator on this
website can do the math for you and tell you
how you would fare under the means test. This calculator is free
and anonymous; you do not need to disclose your name, your email
address, or any other identifiable personal information.

Where to file for bankruptcy

If you have lived in New Jersey for
at least 91 of the past 180 days (six months), you may file at
the court described below. If you've moved recently, you may have
to file at the court that served your old zip code.

The 07860 zip code and all of
Sussex County are in the jurisdiction of the

New Jersey District Bankruptcy Court

Most of your interactions (including the filing of your forms) can
be done by mail. However, you will need to go the
courthouse, in person, at least once for a meeting with the bankruptcy
trustee. (There's more about that meeting in Chapter 7 of How
to File for Chapter 7 Bankruptcy.)

See the list below for more information about your court, including
addresses and maps to the courthouse(s).

Courthouses

Check the court
website for updates to this information before relying on it.

Specific instructions on how the court wants you to prepare
and format a "mailing matrix" of creditor addresses.

Is your court willing to help someone without a lawyer?

Most bankruptcy court websites make
little or no effort to help non-lawyers or provide important
information in plain English. However, a
few stellar courts do
an outstanding job of providing practical, relevant information
in plain English. There is no reason all courts can't do this;
taxpayers should demand it.

Even so, this information goes only so far. Court clerks still can't answer most questions or offer advice, but most now do offer some sort of self-service packet or people filing without an attorney, or who are at least curious about what is involved, before they decide to hire an attorney.

You may want to consult a bankruptcy lawyer early on,
if you can get a free consultation.

Many people find that it's
cost-effective to do some combination of both:

First, spend few bucks on a high quality book. Take an
evening or two to learn about bankruptcy. Learn what bankruptcy
can and can't do for you, and what a bankruptcy attorney
can and should do for you.

Then use the free consultation with the attorney do discuss
the more difficult aspects of your case that the book couldn't
answer.

This approach helps you make the most of your
time with the attorney, and helps you evaluate whether the
attorney really knows bankruptcy law.

Bankruptcy is a specialized
area of law. If you hire a lawyer, you want want one who really
knows the subject and is familiar with local bankruptcy court
rules and customs.

$25 to $100*

Mandatory Pre-Filing Credit Counseling

Before you file for bankruptcy, you must participate in a
credit counseling session and get a certificate proving
that you have done so. This typically costs around
$50 to $75 and takes about 90 minutes, and can be done online
or over the phone. If
you are planning to file jointly with
your spouse, you can both attend the same counseling session,
but each
of you must get a separate certificate.

Many critics of the new bankruptcy law see the credit counseling
requirement as just another bureaucratic obstacle for already-desperate
debtors. Perhaps so. But try to make the most of this 90-minute
session by getting as much free information as you can. Use
it as a way to get a second opinion about
your financial situation, to gauge whether bankruptcy
is, indeed, the right choice for your situation. However, by
law, a
credit counselor cannot actually advise you whether you should
file for bankruptcy.

So far (since the
credit counseling requirement began in October 2005), counselors
are reporting that of the vast majority of the debtors they're
seeing are in such dire
financial shape that bankruptcy is the only realistic option
left for them.

More Info

Resources

$35 to 1,800*

* If you qualify for
legal aid or have a legal plan through your union or employer,
they will fill out the forms for you.

Preparing and Assembling
Your Bankruptcy Papers

Filing for bankruptcy requires you to fill in 50+ pages
of forms detailing all of your
current debts, assets, income, and expenses,
as well as your intentions regarding loans that are
secured by collateral (such as car loans).

In addition to providing this information, you're required
to make decisions about what you plan to do about your secured
debts (that is, debts that are secured by property you own).

The cost of this phase depends on whether you hire professional
help.

Do-it-yourself - under $30

With some diligence, you can prepare all these forms
yourself... but if you're not the careful, diligent type, self-help might not be for you. Bankruptcy rules can be unforgiving, and became more so since the passage of the 2005 law. There was a time when incomplete filings could be easily amended once the errors were called to the filers attention.

Under the new law, it's extra important to have all your ducks in a row before you file -- and there are quite a few ducks... in the form of many pages of forms to fill in and supporting documentation that you must gather and organize before you're ready to file.

Professional Help - $150 to $1800

If you prefer not to handle it yourself, you can find listings
of local bankruptcy
lawyers on this website, in the yellow pages and on online
lawyer directories, such as the National Association of Consumer
Bankruptcy Attorneys (NACBA).

In a few areas you may also find businesses run by non-lawyers,
known as Bankruptcy
Petition Preparers (BPPs), who can fill
out your forms but not offer legal advice.

More Info

Resources

$150 - $2,500*

*
If you qualify for legal aid or have a legal plan through
your union or employer, they will fill out the forms for
you.

Getting Professional
Legal Advice

As mentioned in the previous section, at some point in the
bankruptcy process, you may decide to hire someone to help
you. If you just want help with the mechanical task of completing
the forms and do not need legal advice, you can hire a Bankruptcy
Petition Preparer (BPP).

If you have questions about how to interpret a particular
form, or want an opinion about how bankruptcy law, state
exemption laws or federal tax laws apply to your particular
situation, you may want to hire a bankruptcy
lawyer, at least
for an initial consultation.

A good bankruptcy lawyer should be able to advise you on
strategies to maximize the economic benefit of your bankruptcy
filing, and be familiar with the local practices of the
court. On the other hand, if your bankruptcy is a simple
matter of too much unsecured credit card debt, and all of
your assets are exempt, you may not need all that much help
to get through your bankruptcy.

When you go for credit
counseling, ask your counselor whether your situation seems
routine, and what risks you face in fling for bankruptcy
-- in your particular case. They're prohibited by law from
giving you advice about whether you should
file, but you may be able to get a pretty good sense of whether
your case is simple or unusual, and whether your situation
is so dire that bankruptcy is your best remaining alternative.

$0

Meeting with Trustee and
Creditors (341 Meeting)

Within 20 to 40 days after you file your papers, you'll have
a "meeting" with
the bankruptcy court trustee. It's not a meeting in the traditional
sense. You show up at a certain time, with a bunch of other
people who have their meeting that day, and sit and wait
for your name to be called.

At this meeting the trustee can ask you questions about
the information you put on on your forms. Creditors can
ask questions and object to or challenge the applicability
of exemptions you are claiming.

Before he recenly passed away, Arizona attorney Joseph C. McDaniel made an excellent series of videos about the bankruptcy process including this one about what to expect at the 341 hearing. These videos are still available, as part of his "bankruptcy homework" series. Parts of it are specific to Arizona (like the exemption amount you'd get if the trustee sells your car free and clear).

Resources

$0-200

Filing Motions & Responding
to Creditor Objections

Depending on your circumstances these are two things you may
or may not need to do.

Filing Motions (Requests) With the Court

There may be some liens (creditors' claims against your property)
that you can have removed by filing some extra paperwork
after your original bankruptcy forms have been filed. (More
information on this subject in Chapters
6 and 7 of How
to File for Chapter 7 Bankruptcy)

Responding to Objections

Creditors or the trustee have 30 days after
the 'close' of the creditors' meeting object to something on
your forms. You may (but are not required to) respond before
the court has a hearing on the matter. Depending on the objection
you may need to hire some lawyer to properly respond to it.

Tip: If you are hiring
an online service to prepare your bankruptcy papers, be sure to ask whether the
standard fee includes filing motions for lien avoidance, or
responding to the trustee's or a creditor's objection, or whether
that costs extra.

More Info

Resources

$50-75

Mandatory "Debtor Education" Debt Management Course

As if you don't have enough hoops to jump through already,
when you've completed all the other parts of your bankruptcy,
you still don't get that magic piece of paper called the "discharge"
until you complete a course in debt management.

This is yet another requirement motivated by Congress's assumption
that people who file for bankruptcy wouldn't be broke if they
weren't so careless with their money. Chances are, you really
are broke, so you should see if you qualify for free
or reduced rates. The law says you're entitled
to it. Demand it.

$0
to $2,500

Total Cost
to File Bankruptcy

2. Whether you are lucky enough
to qualify for free legal aid services that happen to be available
where you live.

3. Whether you handle the form preparation and filing yourself
or pay someone
to help you or do it for you.

4. How complicated your financial situation is -- for example,
whether you're facing imminent foreclosure, whether your debts
involve child support or back taxes, and whether you have valuable
assets that are not fully protected by an exemption, such as
a home.

The costs listed here do not include the value
of any property you may need to give up in a Chapter
7 bankruptcy, or the amount you would have to pay over three
to five years into a Chapter 13 plan. This is only the cost
of going through the filing process.

More Info

Where to Find These Resources

To simplify your search for the bankruptcy
resources you need, whatever they might be, this website offers
of a wide range of free information, tools, and links to useful bankruptcy products and services.

Based on Official Form 22A, this calculator will
give you a sense of whether you qualify for bankruptcy based on the official
formula stated in federal law (11 U.S.C. 707(b)). The calculator applies
local expense standards published by the U.S. government.

Despite these new obstacles, bankruptcy
law still provides valuable benefits to those who need it. It helps you
get on with your life. Indeed, "getting on with your life" is the
whole point of bankruptcy -- to put your debts behind you and go forward
with a "fresh
start." This website
helps you learn about the benefits of bankruptcy and how to obtain
them. It lists relevant and affordable products and services that can help
you file for bankruptcy with a minimum of expense and hassle.

Information is not advice. Although this website will give
you a lot of information about bankruptcy law and procedure, it does not
-- and cannot -- tell you, specifically, how this information applies to
your exact situation. Nor can it advise you which course of action is right
for you.

Likewise, the listings of bankruptcy
products and services are not endorsements. They are intended to
expose you to the full range of tools and services that can help you file
for bankruptcy. Think of these listings as a phone book, not a referral.
It is up to you to evaluate the quality of those products or services and
make your own purchasing decisions. If there are third-party reviews of products
or services, I attempt to quote or link to them.

Remember to bookmark this website if you have found it helpful so far. You
won't find a more comprehensive collection of bankruptcy resources and information
anywhere on the Web. Make it your starting point for your bankruptcy research.
And tell your friends.

The book covers the entire process, and gives you the line-by-line instructions you need to fill out the required Chapter 7 bankruptcy forms. Meanwhile, this website gives you access to the latest local court information and county standards for the means test calculations that need to file a sucessful bankruptcy petition.

But first, use the book to find out whether or not Chapter 7 is the best way to deal with your debts. It's important to learn what bankruptcy cannot do. You don't want to go to all the trouble of filing bankruptcy only to find out that the it won't help solve your particular problem or kind of debt.

If you do decide Chapter 7 bankruptcy is the right option, you'll learn how you can use it to:

cancel as much debt as possible

stop wage garnishments and attachments

keep the maximum amount of property using New Jersey exemption laws

deal with secured debts and liens on your property

keep your home and car, if possible.

If you think you want to file for bankruptcy but aren't sure you can afford to hire an attorney, How to File for Chapter 7 Bankruptcy will help you learn what it takes to complete your bankruptcy petition on your own and complete the bankruptcy process.

Press Reviews

"Exceptionally clear."

The New York Times

"How to File for Chapter 7 Bankruptcy advises on everything from how to file court papers to how to respond to threats from creditors.... A do-it-yourself bankruptcy book for people who can’t afford expensive lawyers."

Newsweek

"An in-depth guide to filing under Chapter 7, including state-by-state and federal exemptions as well as forms for do-it-yourself filers."

Kiplinger’s Personal Finance Magazine

"Can help you decide if bankruptcy is the right option for you."

Detroit News

"A valuable, easy-to-understand workbook."

Los Angeles Times

"Includes clear instructions on when and how to fill out all the necessary forms, which assets you may legally keep, even advice on whether your case is complicated enough to make it worth your while to hire a lawyer."

Forbes

"The best [bankruptcy books] I know are published by Nolo."

Harry S. Gross, host of

“Speaking of Your Money”

"Covers all the recent changes to the bankruptcy law, and shows you how to get through the entire process with the least damage."

Accounting Today

Customer Review

"I bit the bullet, and purchased Nolo's How to File Chapter 7 Bankruptcy. I represented myself in court and I was granted a discharge of all debts five months later."

Considering bankruptcy? Get the facts and find out how bankruptcy could work for you.

Bankruptcy laws have changed, and figuring out how to use them effectively is harder than ever. For plain-English guidance you can trust, turn to The New Bankruptcy. Get the strategies, clear-cut answers, and information and you need to figure out whether bankruptcy is the right solution for your debt problems. Find out:

if you qualify for Chapter 7 bankruptcy

how Chapter 13 repayment plans work

which debts are wiped out

how bankruptcy affects homeowners

if you can keep cars and other property

how bankruptcy affects credit

alternative ways to handle debt problems

The 5th edition includes updated state and federal exemption tables, plus information on recent Supreme Court cases that affect bankruptcy. You'll also get worksheets to help you determine whether you can file for bankruptcy, including fully up-to-date exemption charts, helpful checklists, and easy-to-use legal charts for all 50 states.

"…it's important to know whether [bankruptcy] remains a viable option, and this book will offer both explanations and reassurances…"
-Accounting Today

In Paperback and eBookPub. Date: 2013Edition: 5th

Press Reviews

"Authoritative, comprehensive and packed with helpful advice and useful information, including state-specific details."

Eric Tyson, best-selling author ofPersonal Finance for Dummies

and Mind Over Money

"With last year's change in the bankruptcy laws creating unprecedented confusion in the field, it's important to know whether it remains a viable option, and this book will offer both explanations and reassurances..."

Accounting Today

ADVERTISEMENTS - LegalConsumer.com does not endorse or review advertised products or services.

Are you behind on your mortgage, taxes or other bills? Are creditors threatening foreclosure or repossession? Consider Chapter 13 bankruptcy, which can give you an affordable repayment plan -- and let you keep your house, car and other property. Use this plain-English guide to decide whether or not it's right for you.

Nolo's Chapter 13 Bankruptcy breaks down the Chapter 13 process and provides clear explanations of the law. First, you can:

whether you can reduce your car loan balance, or the balance on other secured debts

whether you can get rid of second mortgages or home equity debt

If you think Chapter 13 bankruptcy could work for you, you'll be ready to:

determine (with the book's forms and step-by-step instructions) whether you have enough income to come up with a repayment plan that the court will approve

calculate the amount of your monthly plan payment

find and work effectively with an excellent lawyer, and

rebuild your credit after bankruptcy.

This newest edition includes information on hiring and working with a lawyer, recent court rulings that interpret the federal bankruptcy laws. You'll also find the latest bankruptcy exemption laws in your state, which determine which assets you can keep, and recent IRS standard expense amounts, which affect Chapter 13 plan payments.